Posted on 06/14/2023 5:41:42 AM PDT by millenial4freedom
Low housing inventory will squeeze prices higher, according to Zillow's chief economist. Skylar Olsen now expects home prices to jump 5% in 2023. Falling supply “is a big, huge, massive part of the picture,” she said. Reduced supply is going to help the housing market overturn much of Wall Street's gloomy forecasts and rack up another year of solid gains, according to Zillow's chief economist. Skylar Olsen said Monday that she's expecting home prices to have climbed 5% year-on-year by the end of 2023, due to dwindling inventory levels. Declining inventory "is a big, huge, massive part of the picture," she told CNBC's "Closing Bell: Overtime". "Only two months ago, before we saw these radically low new listings numbers, we were forecasting something much more like 1.2%, something small," Olsen added. "Now, 5% – that's on the hotter side of steady and stable."
(Excerpt) Read more at msn.com ...
Yep. Just went through 8 multiple bid options until I finally bought a house recently in NJ. High demand and no inventory - there is nowhere to build but up.
Those houses are reserved for all the illegals Joe is bringing in.
Millions of deserving “migrants” need housing, and legacy White Supremacists must start sharing with them.
https://www.youtube.com/watch?v=mq__Z-Z_Ofs
I have lived in numerous converted lofts (in NYC and Atlanta) over the years and recommend that kind of living highly.
Depending on the building and location, the conversions can be quick and moderately inexpensive.
Yep. I find it interesting that so few people ask where these MILLIONS of illegals are getting housing. Housing, schooling, food, medical care. Silence.
Of course there will be consequences. Higher prices and shortages due to higher demand will be one.
5% is close to overall inflation rate.
nope. if housing was used for and by only US Citizens and those here legally AND not used by business to house foreign workers and similarly bought up in chunks to create more rentals/apartments ... there its way more than enough houses for those looking to buy.
They created the problem.
Who wants to sell and trade 3% mortgage for a 6% mortgage?
“””Low housing inventory will squeeze prices higher,”””
I have a different view. In the post-Covid era we are experiencing excess deaths. Those houses will become vacant and sold. The illegals do not have any money to purchase these houses.
So, if we combine the effect of high mortgage rates and excess deaths, I foresee a drop in housing prices.
But, Uncle Sam has YOUR money to purchase these apartments, houses, condos, etc. Those illegals have to live somewhere.
1. There had been such a dramatic internal migration in the U.S. from 2020-2022 that many homeowners have no need to sell their homes. This will probably go on for several years.
2. Anyone who is sitting on an oversized home (empty nesters, for example) that was refinanced at a 3% rate has no real incentive to sell and downsize. I use the term “mortgage squatting” to describe this scenario.
Good for me. My wife and I plan on building a house on the farm she inherited in rural Tennessee and selling our current home. Ad they are building apartments in the area like nobody’s business. Rent has gone crazy in this area.
Even more so. Who wants to trade NO MORTGAGE for a 6% payment.
That is the situation for many people too. Especially Baby Boomers who bought their first home 30+ years ago.
Plus, IF you have a 2.5% mortgage like I had at one point you are making more than that on a CD or T- Bill right now. So, you are better financially putting your money into the bank instead of paying off a low interest rate mortgage.
Unless you are planning of building the house yourself I would look into modular/factory built houses in the greater TN, KY, GA, AL area.
I do not mean companies that make double wide manufactured homes. I mean companies that will build all the wall panels, roof trusses, floor system in a factory and deliver it to your site.
This is a much more economic and better engineered house than a stick built home on site.
Same here. Mr. GG2 and I have a rural property up north of Atlanta. We are remodeling our house in the metro area for sale and building a new house in the country out of pocket. Its a win win.
Right now there are only 26 houses for sale in our zip code between $250,000 and $450,000. Normally there would be 300 or more.
Who wants to sell and trade 3% mortgage for a 6% mortgage?
Yes, I know, But Mrs, BOT doesn’t want a factory home. We have already had plans made for a custom home.
Those houses are reserved for all the illegals Joe is bringing in.
*******
Another reason for the supply problem — the supply of rental housing is chained by the leftist war on landlords. Rent controls. Squatters. Barriers to evicting deadbeats. Courts biased in favor of tenants.
Really agree with you on point #2. The migration in point #1 was a more minor factor, as the migration from 2020-2022 was minor in historical terms: https://www.brookings.edu/research/americans-local-migration-reached-a-historic-low-in-2022-but-long-distance-moves-picked-up/?amp
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